FTX is now going through a tough situation. It seems to have collapsed. FTX returning millions to LayerZero Labs and its affiliates. Bankrupt crypto exchange platform FTX has filed a lawsuit against cross-chain protocol LayerZero Labs.
FTX filed to recover $21 million in funds that were assertedly illegally withdrawn prior to FTX’s shutdown in November. The investigators trace back all transactions made from January to May 2022. Major transactions are made between Alameda Ventures, the venture capital arm of Alameda Research, FTX’s sister company, and LayerZero.
According to court documents filed on September 9, $7 million was paid by Alameda Ventures to acquire a stake of roughly 4.92% in LayerZero. In March Alameda Ventures paid $25 million in a public auction for 100 million STG tokens.
Layer Zero isn’t the first that was sued by FTX. FTX also attempting to drag recoup Billions. Cointelegraph contacted LayertZero Labs but did not receive any response at the time of publication.
LayerZero was well aware that Alameda Research was facing a liquidity crisis and, within about 24 hours, negotiated a fire-sale transaction with Caroline Ellison, Alameda Research’s then-CEO.
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